Balance transfer deals are less good than they used to be. 18 months ago you could have got a 43 month deal. Since then the trend has been down all the way - shorter 0% periods and often higher transfer fees as well. Now, in early December 2018, there are only 2 deals longer than 30 months - one 33 month deal and one 32 month deal. There is just one Why are the 0% offers now … [Read more...]
Articles about "Snowballing" - how to clear debt fast
"Snowballing" is the name given to method of paying off your debts as fast as possible, by paying the minimum to all except one and overpaying that one by as much as possible every month. You will also end up with a great credit record!
To find how this works, how to choose which debt to make your top priority and ideas about how you can snowball most effectively, see Debt Camel's Guide to Snowballing.
This page is an archive of all articles about Snowballing in date order.
The best way to clear credit card debt is …
Here is a very common situation: I have £12,000 of debt on a couple of credit cards and a catalogue. Is a loan the best way to sort this out as soon as possible? It's not possible to answer that without a lot more details... but let's explore the options and see what makes some ways better for some people. Why do you want to do this? There are three main reasons: you are fed up with the … [Read more...]
Game, set and match – how to ace your debts!
Paying off debt can feel like a long war with your creditors - you may have a good few months and then some setbacks. But what if this battle was a game of tennis? Listening to the Wimbledon commentators gives clues about how the top players approach training and big matches ... Here are five ideas that can also be applied to clearing debt. 1) Improve your skills "She's been working … [Read more...]
Buying too much online? 5 ways to cut back
A few taps on your mobile and that handbag, those kids' clothes or this kitchen gadget is on its way to you. This can be very convenient with busy lives and little time to go to the shops. But when money is tight or you want to save for something important, is it just too easy to overspend? If it's difficult to resist temptation and you want to cut back a bit - or a lot - to stop wasting … [Read more...]
4 reasons to fix credit card payment
If you are making the minimum payment to a credit card it will probably feel as though you are only paying interest and the balance isn't going down. You aren't alone - in 2016 over 1.4 million people in Britain have been making minimum payments for three years or more. If you are caught in this minimum payment trap, what can you do? Of course it would be best to pay a lot more off your … [Read more...]
How banks make money from 0% balance transfer deals
Although the 0% balance transfers on offer are less good at the end of 2018 than they were a year ago, there are still some great deals to be had. So good that you may be wondering what the catch is! Banks do expect to make money from these "bargain offers". If you know how, you can plan to avoid this and make sure you are the one that gets the bargain, not the credit card company. How do … [Read more...]
Which debt should I clear first?
If you are determined to pay off your debts, then you may have heard of "snowballing" - it's the approach where you pay the minimum to all of your debts except one, which you overpay by as much as possible each month. (If you can't afford to pay the minimums to your debts, snowballing isn't for you - look at A simple roadmap of debt solutions to see what your options are.) But which debt should … [Read more...]
Is it better to consolidate debt or snowball it?
A reader asked about the best way to clear debt: "I owe about 12k and my partner a bit more. We are well paid but we can't rely on the bonuses and we want to get a house as soon as possible. What do you suggest? Preferably easy as we both work long hours - please don't tell me to take sandwiches to work!" First well done on taking the decision to do something about your debts. It's pretty easy … [Read more...]
Frugal Finances or Increasing Income?
If you have a pile of debt you need to clear, is it better to increase your income or cut your expenses? Obviously either can be a big help, which is why they are both included in Debt Camel's Toolkit for Improving Your Finances. But I asked two of my favourite personal finance bloggers in Britain to write about which approach feels more important to them. Jane Clark is the blogger … [Read more...]
Credit cards – to close or not to close?
If you have a credit card with a zero balance, should you close it? Would cancelling it improve or harm your credit score? This is important to get right if you are trying to clear your debts as fast as possible or if you are hoping to get a mortgage soon. Here are the main arguments for and against closing the credit card: No simple answer There are five arguments for and five against … [Read more...]